Television and on-demand audiovisual services in the Russian - - PowerPoint PPT Presentation
Television and on-demand audiovisual services in the Russian Federation A report by Json & Partners Consulting for the European Audiovisual Observatory Conducted for European Audiovisual Observatory 2 The structure of Russian
A report by J’son & Partners Consulting for the European Audiovisual Observatory
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3 Источник: J’son & Partners Consulting
Cable TV 9,6 mln (18%) IPTV
Satellite TV 6,3 mln (12%)
Pay TV – 16,3 mln (31%)
Source: J’son & Partners Consulting
0,44 mln (1%)
Every third family in Russia watches pay TV.
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5
TV
services
Pay TV is television, a subscriber pays for! Definition in incorrect, because there is also a fee for conditional-free channels that propagate via networks of shared access and don’t relate to “pay TV”. Pay TV is cable, satellite and IPTV! Definition is twice incorrect. Firstly, there are terrestrial services of “pay TV”, for instance in DVB-T networks. Secondly, cable and satellite TV provide such types of services that include free channels only. Pay TV is digital TV! Definition is incorrect, because “pay TV” services can be provided in analogue networks as well. Pay TV is TV with conditional access! Definition is close to the real situation in the Russian TV market, however there are also examples of “conditional-free TV” with conditional access.
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In Russia there is a significant volume of analogue TV
analogue TV services, and they all have the analogue TV subscriber base, significantly exceeding the number of digital TV subscribers.
Source: J’son & Partners Consulting
Free TV Conditional-free TV Pay TV
The main players on the conditional-free and pay TV markets
Source: J’son & Partners Consulting
Type of TV services Free channels Technical support Paid channels
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New technologies and programs and new types of subscribers’ devices move TV market more and more actively to non-linear TV
Source: J’son & Partners Consulting
User terminals
Linear TV Non-linear TV
Closed systems Open systems Closed systems Open systems
TV PC, PAD Smartphones
Web TV TV to mobile VOD for TV Cable TV Satellite TV Analogue terrestrial TV Connected TV Web-portals VOD for PC VOD for smartphones Digital TV Video to mobile IPTV IPTV
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54% 29% 24% 49% 40% 16% 33% 62% 21% 28% 11% 29% 5% 14% 16% 14% 6% 5% 11% 12% 5% 3% 4% 5% 4%
Russia Great Britain Germany Poland Japan TV Print Internet Outdoor Radio
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Terrestrial broadcasting is financed by state budget and advertisers’ fees
Shares of advertising expenditures of countries, 2010
Source: J’son & Partners Consulting
Average daily audience federal channels, October, 2011 Coverage of Russian population by terrestrial analogue broadcasting
16,4 15,5 15,3 8,1 7,9 3,8 3,4 2,3 2,1 2,1 1,9 1,8 1,6 1,6 1,3 0,9 0,8 0,8 0,7 0,2
0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 18,0
98,8% 96,7% 73,2% 56,1% 33,0%
5 channels 4 channels 3 channels 2 channels 1 channel
Source: Rospechat’
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To overcome the above mentioned problems, it seems appropriate to examine and use the experience of countries that have successfully completed the transition to digital broadcasting.
digital standards
implementation of FTP
the transfer to digital format
Risks of FTP implementation:
Federal Target Program (FTP) for the development of broadcasting for 2009- 2015 was adopted in November 2009
Ministry
communication has expressed the need to transition to digital broadcasting standards 1997 1998-1999 R & D work "Development of a comprehensive project to establish a system for digital television broadcasting in Russia" 2000 The first in Russia zone
terrestrial TV in Nizhny Novgorod 2001 Experimental Zone for digital terrestrial and cable TV in St. Petersburg The first samples of the digital set-top box DVB T "Elf" 2004 Russian Federation Government Decree "About introduction of the Russian Federation in the European system of digital television DVB» 2005 The first edition
the project "Development Programme in the Russian Federation the European system of TV broadcasting DVB»
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Federal HeadEnd Local Broadcasting Network Local Broadcasting Network
«Single upstream»
Federal HeadEnd Regional HeadEnd Local Broadcasting Network
«Double upstream»
Source: NAT
TV channel Number of partners Subjects of RF Regional programs, hours СТС 191 83 2,6 ТNТ 522 79 3 RЕN-TV 1100 80 3 ТV-Center 241 33 1,6 Zvezda 335 77 3
Three groups of central channels:
5”),
which is universal - “REN TV”,
“MUZ”, MTV, “TV3”, “Peretz”, “Russia 24”, “Euronews”, “2x2”, “Zvezda”, “Semerka”).
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Russian TV market structure by technologies, 2010 Dynamics of Pay TV market volume in Russia and Federal districts, 2009-2010
Source: J’son & Partners Consulting
Current Pay TV subscribers base evolution in 2010 – H1 2011, million households
13 2010 H1 2011
Total 16,3 18,1
Satellite
6,3 7,5
Cable
9,6 9,9
IPTV
0,44 0,7
Source: J’son & Partners Consulting, companies data
329 411 111 137 224 249 31 39 106 116 95 107 47 56 80 89 1023 1203 200 400 600 800 1000 1200 1400 2009 2010 SOUTH FAR EAST SIBERIA URAL NORTH CAUCASUS VOLGA NORD-WEST CENTER Pay TV market volume in RF, mln USD
mln USD
Satellite 34% Fix 66% Analog cable 85% Digital cable 11% IPTV 4%
Source: J’son & Partners Consulting fieldwork data, companies data
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In Russia, the highest Pay TV penetration areas generally match the location of the economically developed centers. The only exception is the Moscow (24%), Moscow Region (33%) and Kamchatka Territory (65%).
0,5 1,9 1,7 1,5 1,6 1,6 0,2 0,2 0,2 0,2 0,3 0,3 0,1 0,1 0,1 0,5 0,6 0,6 2007A 2008A 2009A 2010A 2011E 2012F Satellite Cable IPTV 15
Sales of subscribers’ equipment in physical terms by types, mln units
Digi Raum Electronics 35% General Satellite 28% HUMAX 11% Smartlabs 7% Elecard 4% ZTE 3% AMINO 3% ZYXEL 2% COSHIP 2% Realcube 2% Другое 3% Другой 15%
Source: J’son & Partners Consulting Source: J’son & Partners Consulting Source: J’son & Partners Consulting Source: J’son & Partners Consulting
Sales of subscribers’ STB equipment in money terms, mln USD The share of leading players of the Russian market of STB equipment The structure of sales of subscribers’ equipment in 2010
90 246 171 185 151 152
2007A 2008A 2009A 2010A 2011E 2012F
Russian- language channels Untranslated channels Translated channels
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Operator Package Pay TV channels breakdown by provenance and localisation degree
Source: J’son & Partners Consulting, company data
The most popular translated TV channels: Animal Planet, Discovery Channel, National Geographic The most popular untranslated TV channel: BBC World The most popular Russian-language TV channel: RBC-TV
Operator Pay TV channel bundling by categories, 2010
Source: cableman.ru
This fact highlights a considerable difference between Russian viewers and their Western counterparts who prefer movies and sports channels
Entertainment; 25% Sports; 11% Ethnic; 0,4% Childish; 8% Information; 9% Movies; 13% Music; 11% Education; 20% Adult; 1%
19% 26% 55%
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The definition of “digital dividend”
Source: ITU
Pay TV subscriber base dynamic in Russia, 2009-2015
Source: J'son & Partners Consulting
Existing analogue channels Existing program channels digital dividend
Spectrum
Analog broadcasting Transition Digital broadcasting 2020 Time
14,5 16,3 18,0 19,4 21,1 22,5 23,6 27% 30% 32% 35% 37% 40% 42% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0,0 5,0 10,0 15,0 20,0 25,0
2009 2010 2011 2012 2013 2014 2015
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Forecast of Pay TV subscriber base structure in Russia by Federal Districts, 2009-2015
Source: J'son & Partners Consulting
Central Federal District has the largest subscriber share and, according to estimated of J’son & Partners Consulting, the share of this district will be growing and by the end of 2015 will reach 37%
CENTER NORD- WEST VOLGA URAL SIBERIA FAR EAST SOUTH 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2009 2010 2011 2012 2013 2014 2015
NORTH CAUCASUS
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The subscriber base and penetration of mobile TV in Russia, thousand of people
Source: J'son & Partners Consulting Source: J'son & Partners Consulting
367 CENTER 1648 141 NORD-WEST 635 131 VOLGA 578 91
NORTH CAUCASUS 388
235 URAL 1091 86 SIBERIA 409 137 FAR EAST 640 86 SOUTH 383 1000 2000 3000 4000 5000 6000 2011 2016
The dynamics of mobile TV subscriber base by FD, thousand of people 2010-2016
2010E 2011F 2012F 2013F 2014F 2015F 2016F
Subscriber base, thsd subs Penetration from cellular subscribers, % Penetration from wireless BBA subscribers, %
660 1274 2136 3152 4164 5038 5772
0,4% 0,9% 1,5% 2,2% 2,9% 3,5% 4,0% 1,7% 2,9% 4,4% 6,2% 8,1% 9,5% 10,8% 0% 2% 4% 6% 8% 10% 12% 1000 2000 3000 4000 5000 6000 2010E 2011F 2012F 2013F 2014F 2015F 2016F
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12 14 3 4 2 2
2010 2011 VOD for TV VOD for smartphones VOD for PC
Source: companies data Providers Devices VOD type Beeline TV sets PPV, NPVR Smartphones PPV, SVOD МТS TV sets PPV, NPVR Smartphones PPV Megafon Smartphones PPV, SVOD AKADO TV sets PPV Rostelecom TV sets PPV, NPVR, PVR, SVOD Beeline TV sets PPV, NPVR
Indicators of VOD in closed systems by devices in Russia, 2010-2011
Source: J’son & Partners Consulting
The main players of VOD market in closed systems
PPV per unit of content, RUB, 2011
1,5 5,3 0,7 1,3
2010 2011 Number of subscribers, mln of people Number of projects
89 8 100
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Shares of content segments at the Russian market, 2010
4,9 24% 2,5 12% 1,8 9% 1,4 7% 1,2 6% 0,9 5% 0,8 4% 0,2 1% 6,54 32%
Rutube.ru Tvigle ВГТРК Mail Group Smotri.com Ivi.ru Russia.ru Zoomby Другие Others Others Source: J’son & Partners Consulting
Market volume is 1 799 mln USD
Source: J’son & Partners Consulting
According to forecasts of J’son & Partners Consulting, Internet video advertising market in Russia will increase from 2.4% of Internet advertising market in 2010 to 12% in 2016. It corresponds with the gap in share of video advertising in the structure of internet advertising market as a whole of USA indicators for three years. Forecast of Web TV market, million USD, 2010-2016 Video advertising market structure in 2010, million USD; %
music 8% RBT 41% games 20% pictures 6% information 3% TV broadcasting 6% non-linear Mob TV 4% games and applications in the vendors shops 12%
2010 2011 2012 2013 2014 2015 2016
0,1 0,2 0,72 1,7 4 9 17
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Source: companies’ data
NOW.RU
Project start: March, 2011 In July, 2011 the portal has signed an agreement with the company "Russian World Studios“; due to that for the first time in Russia films will be legally available online earlier than in cinema theatres
VIDEO.RU
Project start: July, 2007 Video.ru became the first portal to offer video content on the terms of the unlimited access.
GetMovies.RU
Project start: 2006 The first full-fledged legal digital video store in RuNet. Daily audience is 50,000 users. The only project that offers HD Ready video.
Successful projects of paid open online-cinemas
OMLET.RU
Project start: May, 2009 Omlet.ru became the only Runet web site, providing the possibility of online-broadcasting and purchase of the content on the VOD model without advertising.
TRAVA.RU
Project start: June, 2010 Multimedia portal of licensed entertainment content "Trava.ru" is available on browsers and all popular mobile platforms. Project is based on "cloud technology".
50 100 150 200 2009 2010 2011 2012 2013 2014 2015 171,2 185,72 152,7 156 159 165 177 18,9 25,6 30,5 35,7 41,1 46,5 51,6 10 20 30 40 50 60 25
Forecast of subscriber base and revenue from the sale of services and terminal equipment for Non- linear TV, 2009-2015
Source: J’son & Partners Consulting
Revenue from the sale of non-linear TV services in 2010 amounted to only 0.4% - 0.8 million dollars. This is primarily due to the newness of the format, poor consumer culture of paid digital content and the absence of its broad relevant base.
Sales of services and terminals, mn USD Non-line TV subscriber base, mn people
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